EPS — Earnings Per Share
Definition: A company's net profit divided by its outstanding shares. EPS is the single number Wall Street watches every quarter to judge profitability.
Example
When Apple "beats EPS by $0.05," the stock often pops in after-hours trading before anyone reads the actual report.
When you'll hear it
EPS shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to earnings per share — and they expect the room to already know what that means.
FAQs
What does EPS stand for?
EPS stands for Earnings Per Share.
What does EPS mean in business and finance?
A company's net profit divided by its outstanding shares. EPS is the single number Wall Street watches every quarter to judge profitability.
Where will I hear EPS used at work?
EPS comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for earnings per share, so people assume you already know the term.
Related terms
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